Morning Dose: Fear or Frenzy? Jobs Report Sparks Market Flames
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
The Morning Dose – Everything You Need to Know Before the Market Opens: Good morning traders! Today the market is holding its breath, near record highs. Equity futures are pointing slightly higher, with all eyes on the August Nonfarm Payrolls report as a critical piece before the next Fed meeting.
Overnight Headlines
Overseas markets set a positive tone with Asia and Europe trading mostly higher. Positive news includes the finalization of the U.S.-Japan trade deal, but watch out for potential tariffs on semiconductor companies from the U.S.
Economic Announcements
Key Data: August Nonfarm Payrolls report expected to show around seventy-eight thousand jobs added, with an unemployment rate of 4.3%. This report will heavily influence rate cut expectations.
Earnings Highlights
- Broadcom (AVGO): Beat earnings, guided Q4 revenue higher, and saw strong A-I semiconductor revenue, leading to an almost eleven percent pre-market surge.
- Lululemon (LULU): Despite beating on earnings, guidance for Q3 and full fiscal year was well below expectations, resulting in a steep nineteen percent drop and multiple analyst downgrades.
- Software Sector: Strong performances from companies like Braze, Guidewire, Samsara, DocuSign, and UiPath indicate robust enterprise spending.
Top Movers
Alphabet: Google to pay nearly $500 million for data collection issue. Boeing: Labor dispute escalating as they plan to replace striking workers permanently.
Quick Trade Ideas
Watchlist: ASML (upgraded to Buy at UBS), TSM, Google, MongoDB for potential continuation plays. Focus on key levels for SPY and QQQ for intraday direction.
Key Takeaway
Traders, the focus today is on the jobs report. Be prepared for market reactions based on the data. Watch SPY and QQQ levels for confirmation in the day’s direction after the dust settles. Stay nimble and trade smart!